Larsen and Toubro plans to sell a third of its holding in Mahindra Satyam on Friday or early next week. L&T holds a 6.9 per cent stake in the company. With Satyam shares quoting at Rs 117.45 on the BSE at close on Thursday, L&T’s total investment of about Rs 600 crore at Rs 82 a share is now worth over Rs 850 crore.
The news of L&T’s interest in offloading a part of its stake in the IT services company has been doing the rounds since Thursday morning. While the company’s official line was that it would not “like to comment on speculation”, insiders confirmed that the decision to sell a portion of its holding has been initiated.
The move could possibly have a link to L&T interest in acquiring a stake in Mumbai-based Patni Computer. The news of this alliance has been doing the rounds for over a month. Last month, L&T’s Chief Financial Officer, Mr Y. M. Deosthalee, said that the company would incur capital gains tax if the shares were sold before December and that the shares bought in the first tranche were at a higher price and it would incur a loss as well by selling them.
L&T had 12.04 per cent holding in Mahindra Satyam (erstwhile Satyam Computer Services Ltd), which subsequently got diluted with fresh issue of shares to the Mahindras, which took over the IT services company. In December 2008, L&T Capital, a subsidiary of L&T, picked up a 3.95 per cent stake in Satyam. In January 2009, L&T purchased 3.9 crore Satyam shares on the NSE at an average price of Rs 34.52 and 1.18 crore shares at an average price of Rs 35.07 on the BSE.
One of the conditions imposed on the bidders for Satyam in April was that they should not sell their prior holdings (of Satyam) for six months since confidential financial details were made available to them. Hence, L&T was restrained from offloading the shares till October 14.
crackcrack
| Company Name | CMP |
|---|---|
| Larsen & Toubro | 3521.95 |
| Rail Vikas Nigam | 415.45 |
| NCC | 272.90 |
| KEC International | 992.60 |
| Kalpataru Projects | 1125.85 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Make an informed decision for Stocks
Invest using an intelligent system with powerful data-driven tools that help you identify opportunities and make informed buy-hold-sell decisions
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
Claim your FREE 15-day access to the most practical investing handbook.
Hurry, limited to the first 10 users today!
FREE Become a savvy and confident
stock investor.
Hurry, limited to the first 10 users today!
Download APP
